All Forum Posts by: Robert Gilstrap

@Steve K. SF STR's are nothing like hotels; they have no parking lots, they don't have hundreds of strangers staying together in different rooms, they don't have onsite 24/7 staff performing housekeeping, front desk or maintenance, they don't have bars, restaurants, common areas, public restrooms or meeting spaces located on site, hotels are commercial structures designed to house hundreds or even thousands of people under one roof.

I'm actually a bit surprised that someone who is licensed thinks that something is "common knowledge among professionals" isn't more versed in the legal concepts and arguments for and against the topic but regardless my stance is still the same. Just because "they do it this way where I'm from" doesn't make it gospel for everyone, everywhere else.

@Steve K. The problem with your blanket statements of "tons of case studies" is that case studies hold no weight under law. I'm interested in COURT decisions. I have no doubt that in some court, some where a judge has  decided that renting short term is commercial activity and may be considered a business but as I'm sure you're aware we have 50 incubators in this country and thousands of courts who come to completely different decisions everyday and every single case has different relevant facts. So my point is in responding that there is absolutely no consensus on the issue which is why I asked the person posting what state they were in as that would allow one to make an informed decision based on his/her state laws.

@John Underwood so your logic is that renting your place for 10 days is a business but renting it for 10 months or 10 years is somehow not a business? 

You keep repeating this mantra that you are required to have commercial insurance for a STR which is just not true (at least not universally true). I get it that you have a commercial STR policy. I also have a commercial long term rental policy but that doesn't define the activity. We simply bought a product with defined parameters.  What type of insurance one has, whether or not someone is required to have a business license or even how something is taxed does not define it's legal status. I mention that because lots of court cases in this space have centered around just that argument and appellate courts have rejected that logic. 

I will agree with you that dealing with HOA's can be problematic for sure and depending on what state this person is in might make it all an uphill battle not worth fighting but I never try to dissuade someone from investigating further,

@John Underwood Do you consider the long term rental of residential property a "commercial business" as well?

@Mike Cichy what would make you think that a Short Term Rental is not for "residential purposes"? I'm guessing at your personal home you eat, sleep, shower, use the bathroom, watch TV, engage in conversation with your friends/spouse, read books, etc. What activity do you think goes on at every STR on Earth? The guests eat, sleep, shower, use the bathroom, watch TV, engage in conversation with your friends/spouse, read books, etc.

If you have no rental restrictions in your HOA then you should be good but obviously read and understand what the covenants say and of course your states laws will dictate to some degree, what state are you in?

I use Yale YRD210 or 216 Z-wave locks and love them. Problem is it get expensive coupled with all the other smart home stuff in the home.

@Andrew Simms what are you paying for your smart locks? Are they deadbolt type or handle type?

depends on how worried you are that one of those doors will be left open/unlocked by a guest. I'm paranoid about that type stuff so I put electronic locks and door contacts on all exterior doors for that reason. That being said I get it, 6 exterior doors is gonna get pricey...On a couple of properties where the door is redundant I double side deadbolt them so there is a key on both sides and the guest can never open or use that door it just stays locked but obviously that depends on your property/situation.

@Holly Barrett Absolutely, I'll help you with real numbers for your investor client, you help them buy and collect a commission and my goal is to hopefully manage the property. You win, they win, I win.  Rinse and repeat!   Either way, if you need help call or email me.

@Chris Kuropatwa call or email me and I'll run you data on AirDNA and Mashvisor for whatever address you are curious about. These are the two I primarily use. Alltherooms.com is another one.